LUB discusses financials

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The Lamar Utilities Board met on Tue. July 24, 2012 for their regularly scheduled meeting. All board members were present.

After approval of the minutes from the previous meeting the board approved purchase orders and bill payments. Superintendent of Lamar Light and Power Houssin Hourieh presented the Financial Report. The financial data available to the board is for 2012 up through the month of May.

The total operating revenue for the month of May is $994,477 with total operating costs of $952,457 resulting in gross operating income of $42,020. When the non-operating revenues and expenses are taken into consideration there is a net loss for the month of $73,869. The reason for the net loss is the result of the recent tornado in late April and the micro bursts that struck shortly thereafter. Lamar Light and Power has yet to receive reimbursement from Colorado Intergovernmental Risk Sharing Agency (CIRSA). It expects CIRSA reimbursements to cover the loss.

Year to date, through the month of May, total operating revenues for the year are $5,420,921 and total operating costs are $4,367,216 resulting in gross operating income of $1,053,705. When the non-operating revenues and expenses are taken into consideration there is a net income of $642,092 year to date, though the month of May.

When compared to 2011 revenues from retail sales are up approximately $416,357 or eight percent, comparing May 2012 to May 2011 however overall operating expenses are down approximately four percent resulting in a net income of $642,092.

Hourieh also presented the board with the system operating report updating on the performance of the four wind turbines east and south of Lamar. Three of the turbines belong to Lamar Light and Power (LL&P), one turbine belongs to the Arkansas River Power Authority (ARPA). The three owned by LL&P have generated 7341 MWH of electricity in the first two quarters of 2012.

Each May the LUB gathers data on the exact amount of meters in use. The LUB has gathered this data annually since 1999. In May of 2012 5,688 conntected meters were in service. This is up from the low point, in 2010, of 5,635 connected meters. The high point for connected meters was in 2003 with 5,836.

Hourieh discussed ongoing work with boilermaker Babcock and Wilcox regarding needed modifications to the coal plant boiler. He said, “Last week we met with eight field engineers who were on site to look at the 2012 boiler modifications. They went back to Ohio to finish their design work. We should have their drawings within four to six weeks, maybe sooner.”

After some discussion the board approved a 30-day notice of cancellation to Legacy Bank for their payment option through the bank. The LUB has a contract with Legacy Bank from 1974 that authorizes Legacy Bank to be an official Payment Agent for LUB. There are a limited number of customers who use the service through Legacy Bank. There is a minor service charge placed upon all payments made through the Payment Agent system. With the availability of different payment options such as auto-pay and payment online the LL&P staff recommend canceling the service.